In the simple Keynesian Cross model, the equilibrium level of real disposable income is determined by:
a. the real interest rate
b. prices.
c. aggregate expenditures.
d. aggregate supply.
c
You might also like to view...
Which of the following is a reason for the success that firms have in getting the government to erect barriers to foreign competition?
A) The costs from free trade are greater than the benefits. B) The jobs lost to foreign competition are easy to identify but jobs created by foreign trade are often hard to identify. C) People who benefit from foreign trade tend not to vote in elections; people who are harmed by foreign trade are much more likely to vote. D) Firms that are harmed by trade barriers have less money to lobby government officials to eliminate the barriers than do firms that benefit from trade barriers.
Which of the following factors will not determine output and employment in the classical model?
a. Taxes that affect the incentive to work or hire labor b. The level of government spending c. The quantity of capital d. Preferences for leisure e. None of the above
A tax on a market with elastic demand and elastic supply will shrink the market more than a tax on a market with inelastic demand and inelastic supply will shrink the market
a. True b. False Indicate whether the statement is true or false
An incentive to cheat and overproduce (prod quota)
What will be an ideal response?